Małgorzata Baran, Monika Kłos 209 ISSN 2071-789X

INTERDISCIPLINARY APPROACH TO ECONOMICS AND SOCIOLOGY

Małgorzata Baran, Monika Kłos, Competency Models and the Generational

Diversity of a Company Workforce, Economics & Sociology, Vol. 7, No 2, 2014,
pp. 209-217. DOI: 10.14254/2071-789X.2014/7-2/17

Małgorzata Baran COMPETENCY MODELS

PhD
Collegium Civitas AND THE GENERATIONAL
Warsaw, Poland DIVERSITY OF A COMPANY
E-mail:
malgorzata.baran@collegium.edu.pl WORKFORCE
Monika Kłos ABSTRACT. This paper aims to present an analysis of
PhD employee competencies across different generations,
Wyższa Szkoła Biznesu w Pile placing emphasis on their attitudes towards the labour
Piła, Poland market and future perspective concerning work, as
E-mail: m.klos@wsb.pila.pl determining factors in creating competence models
encompassing employee diversity management.
A competence model is a set of competencies that stem
Received: March, 2014
from the company strategy and allows it to fulfil its goals
1st Revision: April, 2014
in accordance with its values and an expected work style. It
Accepted: May, 2014
is one of the basic tools of human resource management,
used in a wide variety of scenarios ranging from the
recruitment of employees, shaping career paths,
DOI: 10.14254/2071- conducting training/development programmes and regular
assessments, to designing motivational and pay schemes.
789X.2014/7-2/17
The literature on the subject quotes many definitions of
competencies, as well as examples of many contemporary
competence models. Owing to their scope of interests, the
authors decided to analyse selected competence models
with regard to the manner in which “competences” are
defined and the differences between employee-oriented
and job-oriented models. The authors used G. Filipowicz’s
approach (who created a combined definition of
competences embedded in a coherent model) to create a
research tool used to scrutinize the skills and attitudes of
individuals coming from three different generations. The
research results allowed the authors to draw conclusions
concerning the avenues of designing competence
management models of diverse employees (i.e. in respect
of age and knowledge) by creating a suitable work
environment, including a pro-effective organizational
culture and building employee commitment – which will
make it possible to create a new work model, tailored to
the needs of individual companies.

JEL Classification: J24, J53, Keywords: generations, generational diversity, companies, labour
J54, J62 management.

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Introduction

Currently, no one questions the fact that human capital is the most valuable asset of
every organization. However, simply having a team of employees does not mean that a
company is destined for success. The true asset is certain desired employee characteristics. In
short, a company’s potential is equal to the total competence potential of its workforce.
Therefore, competence management becomes a key human resource management tool used
by organizations operating in today’s enormously competitive market (Sienkiewicz, Jawor-
Joniewicz, Sajkiewicz, Trawińska-Konador, Podwójcic, 2013).
The ultimate goal of management is to create a system in which an institution’s
employees cooperate in a way that minimizes the impact of their weaknesses, while making
best use of their talents and strengths (Drucker, 1976). Thus, competence models can be used
as signposts and guidelines when defining, refining and evaluating knowledge, skills and
attitudes of any organization’s professional workforce (Wyrozębski, 2009).
The growing interest in practical application of human resource management systems,
based on a model of competence, refers us to the meaning of the basic concepts of
competence, including professional competence. Both business experience and research
confirm that the decisive factor for the success of almost any organization are activities
allowing for the use and development potential of employees. Therefore, there are becoming
more diverse competency models in practice of companies’ management. facilitate the
implementation of systems of competency and help not only to plan, organize, but also to
assess the work in this field.

1. Competence models – the employee-oriented and job-oriented approaches

The competence model is an approach to management centred around employee

competence, unlike classical management models which focused on the qualifications and/or
characteristics and intelligence of individual employees. The qualifications-based model
assumes that job positions should be assigned to candidates on the basis of their education.
Many scientific theories were drawn up which claim that professional success is dependent on
an individual’s intelligence and personality traits. However, subsequent research did not
prove those hypotheses (Uniwersalny Model Kompetencyjny, 2012). In the traditional model
employee recruitment, and later training, development and evaluation decisions were based
on analyses of tasks assigned to specific job positions (Sienkiewicz, Jawor-Joniewicz,
Sajkiewicz, Trawińska-Konador, Podwójcic, 2013). This did not take into account the talents
of individual employees and the means that they employ to achieve specific goals. These
shortcomings are addressed by the competence model. All decisions regarding the company’s
human resource policy are taken in line with a set of clear principles (keeping in mind the
employees knowledge, skills, etc.) which allows it to achieve a more effective growth rate
than would be possible when utilizing traditional models. T. Oleksyn defined competence
management as a “complex of actions that leads to increasing the value of human capital and
the organization’s functional effectiveness. It encompasses the establishment of competence
standards, planning and organizing actions associated with shaping competence within the
organization, inspiring and motivating employees to undertake professional training and to
take on new, or broaden their existing organizational roles, as well as exerting control over all
processes associated with the above actions (Sidor-Rzeczkowska)”.
At this point, an exhaustive definition of competences is in order. Generally speaking,
the term “competences” includes skills, but also motivation, values, ambitions and attitudes.

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The wealth of literature on the subject usually follows two main approaches to defining
competences, depending whether the term is used to describe employees (what competences
does an employee have and where do they stem from?) or job positions (what competences
are required for this job position?). Therefore, two main approaches are presently recognized,
i.e. employee-oriented and job-oriented.
The first approach (i.e. employee-oriented) defines the properties or characteristics of
a person (e.g. knowledge, skills, talents, attitudes) which allow them to work effectively and
lead to certain types of behaviour at work. A definition drawn up by Dubois and Rothwell
may serve as an example of this approach. According to them, competences are a set of tools
that employees use in a variety of ways to carry out specific work tasks. This includes:
knowledge and skills, but also more abstract types of competence such as: patience,
perseverance, flexibility and self-confidence. Dubois and Rothwell regard these competencies
as essential in performing any kind of job, because a lack of competences leads to a lack of
results and, therefore, a lack of organization (Dubois, Rothwell, 2008).
Other authors (Friesen and Anderson) define competences as an integrated utilization
of knowledge, skills, values, experience, contacts, external sources of knowledge and problem
solving tools for performing various types of activity or overcoming difficult situations
(Friensen, Anderson, 2004).
The second approach outlines a series of actions essential for performing a job which
are then used to draw up a profile of an ideal candidate. Thus defined actions are then used to
describe the personal characteristics of an employee suited for a given job. All definitions of
competencies encompass a certain set of characteristics which are essential for performing a
specific job (Woodruffe, 2003). The Report of the Competencies Workgroup defines
competencies as employee characteristics that contribute to a successful completion of work
tasks and achieving organizational results. Competencies include: knowledge, skills, attitudes
and other characteristics, such as values, motivations, initiative and self-discipline (Report of
the Competencies Workgroup). Nordhaug and Gronhaug define competences as a capability
to perform work in a given profession (Nordhaug, Gronhaug, 1994). Woodruff’s definition is
similar – a set of behaviours that an individual must exhibit in order to carry out tasks to
completion (Woodruffe, 2003).

2. Competence management according to Grzegorz Filipowicz’s model

There are numerous competence models, as well as various ways of implementing

them in an organization. However, many of these models include all competencies that are
required from employees of a given organization, grouped into separate profiles
corresponding to specific positions and organizational roles (Filipowicz, 2004). The desired
competencies vary depending on the company’s or the organization’s profile, however, there
is a set of general competencies which are desirable in all employees.
Some authors regard the aforementioned definitions, which distinguish two types of
competencies (solely employee-oriented or job-oriented), as too limited and, therefore,
decided to combine them into a single, cohesive model. This approach allowed for drawing up
a more exhaustive description of complex competences, such as leadership skills, problem
solving and decision making.
One of the proponents of this approach is Grzegorz Filipowicz. In his opinion,
competencies are “dispositions in the area of knowledge, skills and attitudes which make it
possible to perform work tasks at a desirable level (Filipowicz, 2004)”. The author
distinguished two basic competency categories: basic and executive. Competencies falling
into the former category are a foundation for further competencies, they serve as proof that an

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individual is “ready” to exhibit certain types of behaviour falling into three sub-groups:
cognitive, social and personal (Uniwersalny Model Kompetencyjny, 2012).
Basic competencies influence the quality of performed work tasks (associated with
their individual completion) and the speed at which decisions are made. The following
behaviour types are specific for this category of competencies: analytical thinking and
creativity. At the same time, the category includes competences that are indispensable when
working and communicating with other people (e.g. communication skills, relationship-
building skills and teamwork skills). The next category is associated with specific actions
performed within a company (e.g. giving presentations) and has been divided into the
following types of competencies: business, company and managerial (Filipowicz, 2004). This
group includes competencies that are essential for leading a team of employees and have a
decisive impact on the effectiveness of company management (e.g. competent management in
many areas (conflicts, information, processes), coaching and leadership). Executive
competencies affect the execution of tasks associated with specific professions, jobs or
functions. They are closely tied to the specialization of a certain group of job positions. This
category includes all types of analyses, diagnosing, as well as all other types of proficiencies
(e.g. language skills, the ability to use a computer system, etc.) (Filipowicz, 2002).

3. Study results concerning competences possessed by employees from different

generations – a comparative analysis

The authors of this paper have conducted a study (in Poland, in the first quarter of
2013) with the aim of analysing the competences considered important from the employer’s
and employees’ point of view, possessed by employees of various ages. The sample consisted
of 850 individuals who were divided into three separate groups on the basis of their date of
birth: the Baby Boomers (BB Generation) (1949-63), the X Generation (1964-1979) and the
Y Generation (1980-1994). Respondents were asked to select their preferred attitudes and
values by rating each one on a scale of 1 to 3. Some questions featured the Likert scale. This
paper presents some of the study’s findings. To describe competences and distinguish
between their various types, the authors adopted Grzegorz Filipowicz’s definition of
competences. This allowed them to create a list of basic competences which was then verified
by the respondents.
The study results show that motivational factors are similar across all three
generations. A sense of being useful to others can be seen as the main source of motivation
among members of all three generations: the BB Generation (26%), the X Generation (17%),
the Y Generation (19%). The need for recognition is also prevalent among members of all
three generations: 13%, 14%, 16% respectively. The above results are in line with the basic
motivational factors outlined in Herzberg’s theory of motivation.
The below chart presents the answers given to the following question: Which of the
competencies that you possess does your employer expect from you?

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Chart 1. Competences expected by the company – by generation

Source: Authors’ research.

Analyzing the results of the research, we notice that four answers were the most
frequent among respondents:
- constant development requires you to do your best (most frequent answer among
members of the Y Generation);
- being a profit-making asset for the company – as the main business competence;
- adaptation skills (the ability to embrace change);
- conflict resolution skills.
Knowledge of processes, including the skills necessary to use computer systems and
conduct analyses, is more common among members of the Y Generation, as is creativity,
which has an impact on the quality of performed tasks, as well as the number and innovative
problem solving mechanisms implemented in companies.
Feeling unneeded was considered the most discouraging factor by members of all
three generations (29% Y, 22.4% X and 21.9% BB). This conviction was the strongest among
the Y Generation. Members of this generation also think that individualistic behaviours of
others (19.7%) have a negative impact on teamwork and communication between employees.
Baby Boomers were more critical towards a lack of leadership and ethics (12.8%).

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Chart 2. Discouraging factors – by generation

Source: Authors’ research.

Companies use competences, or rather the differences between competences, to build

competence-based human resource management models, but the aforementioned diversity has
an impact on intergenerational cooperation and the vision that each employee has of his own
place in the organization.

4. Future perspectives of the three generations

In order to find out the respondents’ future perspectives, the authors of the study asked
them a question about their future on the labour market. Chart 3 shows that “I can only
depend on myself – I am building my future on my own” was the most frequently chosen
answer, which reflects the respondents’ disillusion and loss of trust in the institution of the
state. The answer was most prevalent among members of the Y Generation (35.0%) and less
frequent among members of the other two generations (26.4% among BB and 27% among X).
Once again, the opportunism that is often attributed to the Y Generation does not seem to be
its distinguishing characteristic. We may also conclude that members of each generation wish
to take control over their careers, however, the means of achieving this goal differ. Other most
frequently chosen answers include (in order of frequency): importance of teamwork; the need
to find balance between private and professional life and keeping up with trends present in the
macro environment. The least frequently chosen answers are associated with stress, e.g. a lack

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of vision for the future and the inability to benefit from profits available to employees in the
past.

Chart 3. The most important future perspectives by generation

Source: Authors’ research.

When asked about future perspectives on challenges that businesses will face,
respondents most frequently pointed to innovation (21.2% among X, 21.9% among BB and
23.7% among Y), meeting the needs of clients (19.1% among BB, 19.3% among Y and
20.0% among X) accommodating new generations (17.7% among X, 18.4% among BB and
21.0% among Y) mainly with the use of new methods such as mentoring and coaching.
The next issue the authors wished to focus on, were the differences in attitudes
towards work time between employees coming from different generations. Most respondents
were of the opinion that striking a balance between private and professional life is essential
(33.0% among BB, 38.4% among X and 34.0% among Y) which gives us some insight into
the factors that individuals take into account when thinking about work types and work time.
Being able to manage one’s own time (respectively 17.0%, 15.6% and 22.3%) and
undertaking stress-relieving activities (respectively 19.4%, 15.6% and 16.3%) will provide an
opportunity for growth. The chart shows that members of the Y Generation are less sensitive
to extending work time in order to be able to complete all responsibilities, owing to their
multi-tasking skills. Members of the remaining two generations prefer doing one task at a
time – they need to finish one task in order to start working on the next one.

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Chart 4. Attitudes towards work time – across generations

Source: Authors’ research.

Our empirical research lead us to the conclusion that opinions concerning the Y
Generation should be treated as relative. Based on the results of our study, we believe that
employers should be wary of the widespread opinion that members of the Y Generation will
be particularly hard to manage due to their inherent characteristics.

Summary

Contemporary literature increasingly often sees the term “human resources” being
replaced by “human capital” which attests to the growing awareness of the importance that
the human factor has in the age of a knowledge-based economy. Successful management of
employees requires conscious verification and development of their skills and attitudes, as
well as making effective use of their intellectual potential. It is important to recognize and
understand the fact that every human is an individual being, with their own consciousness,
specific personality traits, talents, skills, knowledge and experience which they contribute to
the organization. This should be placed at the core of creating and improving human resource
management models, especially competence models which encompass managing employee
diversity. Competence management models should have the ultimate aim of achieving an
optimal combination of work environment and employee potential that would benefit both the
company and the employees. The results of the authors’ study show that the Y Generation’s
attitude towards work does not set it apart from the other two generations, however,
depending on their age, employees have different preferences, attitudes and habits. This
breeds additional questions concerning the practical application of specific competence
management methods (customized, generation-differentiated). The authors plan on
conducting further research on the subject in the future.

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